Haisheng Juice (00359.HK) intends to sell all the equity of Mengzi Haisheng Modern Agriculture for 54.2516 million yuan

On October 13, 2021, Gelonghui announced that 00359.HK on October 13, 2021, the vendor, Shaanxi Chaoyue Agriculture Co., Ltd. (a non-wholly-owned subsidiary of the Company), the target company Mengzi Haisheng Modern Agriculture Co., Ltd. and the buyer, Wuba Agricultural Technology Co., Ltd., entered into an equity transfer agreement, pursuant to which the seller agreed to sell and the buyer agreed to purchase the shares for sale (the entire equity of the target company) for a total purchase consideration of RMB54.2516 million.

Upon completion of the transfer of the Shares for Sale, the Target Company will cease to be a subsidiary of the Company and its financial statements will no longer be consolidated in the Group's financial statements.

As at the date of publication, the target company is a limited liability company incorporated in the PRC. It is a wholly-owned subsidiary of the Vendor and principally engaged in the cultivation and sale of fresh fruit. It operates a modern agricultural industrial park, including about 4,000 acres of blueberry and pomegranate plantations.

In recent years, due to Sino-US trade frictions, the impact of the new crown epidemic on the market, and the long payback period for investment in agricultural production, the company's operating pressure is relatively large, and the debt burden has increased. The Company has adjusted its business strategy for agricultural classification from time to time in response to changes in market conditions, optimized resource allocation, and plans to reduce the number of small-area bases to improve operating efficiency and reduce expenses, thereby improving its cash flow situation. The disposal is in line with the Company's business strategy and is expected to have a positive impact on the Company's cash flow.

This article originated from Grand Gateway